Meet Adam Steele, a self described “marginally successful” serial entrepreneur who has built and run 3 companies and is working on company number 4.
You’re working on company #4, what happened to your first 3 companies?
“The first 3 are still all very well and living and growing. Number 4 is sort of just another pet project. They’re all kind of pet projects. They’re all much more than pet projects but I get to a point where things get a little bit on the stale side and then I need another one,” Adam explains.
So is this ADD where you get bored and pass it on to other co-founders?
“Not so much co-founders but rather we get things to where they’re processed to a point where my involvement is very little and then my daily tasks decrease, decrease, and decrease and then I find myself running around online and not doing a heck of a lot. Then that is usually when the next thing happens,” he explains.
Which company is the most successful in terms of total revenue in 2015?
“Definitely The Magistrate, the digital marketing company,” Adam explains. However he uses other metrics for determining success, continuing that he likes to “measure less on revenue and more on involvement.”
He goes on further explaining that another one of his companies, Loganix, which is an outsourcing company, fits more into his metrics of success as he is “sleeping and sales will come in.”
Founded in 2010 and rebranded two years ago, Loganix, according to Adam, currently is doing “about $60k a month” and total revenue for 2016 is estimated to hit at roughly $750k.
“Last year (2015) was more in the $40-$45k range,” he explains.
What’s your net margin?
“About 25% is cost, so 75% roughly,” says Adam continuing that, “keep in mind that we have never had 75% because we spend tremendously on resources.”
Going on to say that it’s on “tons of engineering costs.”
So as the entrepreneur of multiple business lines, how is your cash treated?
“I have this very bad habit of taking all of the cash from my companies and pouring it into company 4 and company 5,” he says further explaining that he “fails miserably at” paying himself first.
“Magistrate is the umbrella company and then the others are subsidiaries, you could call them. So Magistrate pays me a salary,” Adam says. He goes on further to explain that the remaining portion of his income “is paid out in dividends.”
Although Adam has full control over his companies, this very smart entrepreneur has done his homework. The advantage, in Canada, to getting paid out in dividends is a “tax advantage.”
Here are the links to get more information on Adam’s companies:
- For more on The Magistrate, go to www.giftstarter.com
- For more on Loganix, go to www.loganix.net
- For more on Local PBN, go to www.localpbn.com